Friday, September 15 2023 14:04

ArmInfo. As of August 31, 2023, Armenia's national debt totaled $11.387bln  - a 7% increase  this January-August (a $749.2mln increase), and a 5% or AMD 208.5bln increase. The period under review saw further AMD appreciation against the USD - AMD 480/$1 to AMD 385/$1.  

According to the data by the RA Ministry of Finance, Armenia`s  national debt in USD terms increased by $757.7mln (7.5%) - from  $10,086.4mln (2022 end) to $10,844.1mln. The government's debt in AMD  terms increased by 215.9bln (5.4%) - up to 4,185.6bln. 

Armenia's foreign debt (the country's liabilities to international  organizations, foreign states and funds received from Eurobond  issues) increased by $194 mln (3.3%) or 6,088mln, decreasing by AMD  30.1bln or by 1.3% - from AMD 2,319.7mln down to AMD 2,349.9mln. 

During the period under review, the domestic debt increased by $563.8  mln or by 13.4% - from $4.192.3mln (AMD 1,650bln) as of the end of  2022 to $4.756.1mln (AMD 1,835.7bln). 

The CBA`s debt increased by 1.5% or by $8.5mln - from $551.3mln or  AMD 217bln to 542.8 or AMD 209.5bln. Loans against government  guarantees decreased from AMD 34.3bln down to AMD 31.4bln, or from  $87.1mln down to $81.1mln. 

As of the end of August 2023, the share of domestic debt in the  government debt increased from 41.6% at the end of 2022 up to 43.9%  (29.4% by the end of 2021 and 46.6% by the end of April), with the  AMD debt increasing from 37.9% at the end of 2022 up to 42.6% (28.28%  by the end of 2021). Only 16.3% of the government debt was at a fixed  rate (17.1% at the end of 2021 and 16.5% by the end of last year). 

Words pay no debts

This January-August, the financing of budget deficit from net  borrowings totaled AMD 240.6bln (with the amount under the annual  programme being AMD 483.3bln), with AMD 252.6 bln due to internal  resources (with the amount under the annual programme being AMD  310.9bln), AMD 12bln from external sources (with the amount under the  annual programme being AMD 127.4bln).  

 A total of AMD 136.1bln of the AMD 272.9bln budgeted under the  annual programme were directed to serving the government debt  (interest payments). 

According to the government debt repayment schedule up to 2054, next  year Armenia is to direct a little more than $1.5bln (the CBA's debt  not included) to paying and serving the government debt accumulated  by the end of August; nearly AMD $2bln in 2025; a little more than  $1.4bln in 2029; over $1.7bln in 2031. 

As of August 31, 2023, the unclaimed balance of the government debt  totaled $4,468.5mln ($4,503.9mln as of August 31, 2022).  

Armenia's creditors

The World Bank is Armenia`s major creditor, - the share of the  International Bank for Reconstruction and Development and  International Development Association in Armenia`s national debt  being 37.7%. The Asian Development Bank ranks second - 18.6%,  followed by the IMF (7.6%), Eurasian Development Bank (7.6%) and  European Investment Bank (2.9%). The share of external loans from the  EU is 1.6%, the International Fund for Agricultural Development  (IFAD) (1.2%), OPEC Fund for International Development (0.8%), EBRD  (1%). 

As regards creditor-nations, Russia ranks first (6.3% share in the  external loans and borrowings of Armenia's government), followed by  France (5.5%), Germany (KfW, 5.1%), Japan (3.1%), China (0.4%), the  USA (0.2%), and Abu Dhabi Fund for Development (0.1%) of Armenia's  foreign debt. 

Forecast by financial authorities 

According to the forecasts underlying the 2023 budget, Armenia's  national debt is to reach AMD 4,645ln or 49.8% of the country's GDP  by December 31, 2023, with an expected 0.3% decline as compared with  the end of 2022.